Fix or float is the big mortgage question as Bank of Canada rate cuts approach

This Wednesday could be a game-changer for family budgets everywhere. If not then, mark your calendars for July 24.in more than four years. The anticipated move would be financial Aspirin for a lot of borrowing headaches, and it comes after what Rosenberg Research founderFor those with adjustable-rate mortgages, cuts mean the savings should soon start adding up.

Should market rate forecasts hit near the bullseye , a borrower with a standard $500,000 variable mortgage could theoretically save about $6,000 of interest over five years versus an old-school five-year fixed. mortgages remain the best values among fixed rates.

Of course, just because a particular term looks good on paper doesn’t mean it’ll actually pan out. Risk tolerance plays a significant role, too. Those on a tighter budget shouldThis might involve signing up for a fixed term of three years or longer, or exploring a hybrid setup — part of your loan fixed, part variable. You get to pick the mix; it doesn’t need to be a 50/50 fixed/variable split. To find a cost-effective hybrid, Scotiabank-approved brokers, TD, BMO and RBC are among the best bets.

For self-employed mortgage applicants, prime lenders routinely ask for the last two years of tax documents and take a two-year average of the reported income, or use the lower of the two years if your income is descending. For folks who didn’t report a lot of income in 2023, but did in the two prior years, some lenders still allow the use of 2021 and 2022 tax returns up until June 15, the 2023 tax-filing deadline for self-employed individuals.Wowa.

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